Boston Beer Company Inc (SAM)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.36 | 1.36 | 1.38 | 1.32 | 1.33 | 1.35 | 1.37 | 1.34 | 1.33 | 1.43 | 1.42 | 1.41 | 1.41 | 1.42 | 1.44 | 1.42 | 1.44 | 1.43 | 1.46 | 1.57 |
The solvency ratios of Boston Beer Company Inc, which provide insight into the company's ability to meet its long-term financial obligations, exhibit a strong financial position with consistently low debt levels over the analyzed period. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remain at 0.00 throughout the timeframe, indicating that the company has no significant debt relative to its assets, capital, or equity.
Furthermore, the Financial leverage ratio shows a declining trend from 1.57 in March 2020 to 1.36 in December 2024. This decreasing trend indicates that the company has been effectively reducing its reliance on debt to fund its operations, resulting in a lower level of financial leverage and potential risks associated with high leverage.
Overall, the solvency ratios suggest that Boston Beer Company Inc has a strong financial foundation and is well-positioned to manage its debt obligations and sustain long-term financial stability. The consistent low debt levels and decreasing financial leverage ratio highlight the company's prudent financial management and ability to operate with minimal financial risk.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | — | — | — | 60.83 | 32.77 | 21.03 | 18.94 | 35.45 | 38.47 | -473.06 | -620.65 | 72.71 | 1,183.22 | 3,067.44 | 1,065.03 | 775.26 | 467.63 | 302.45 | 339.96 |
The interest coverage ratio is a financial metric that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio signifies that the company is more capable of meeting its interest payment obligations.
Based on the data provided, Boston Beer Company Inc's interest coverage has fluctuated over the past few years. The interest coverage ratio was very strong in the first half of 2021, peaking at 3,067.44 in June 2021, indicating a robust ability to cover interest expenses. However, this ratio declined significantly and became negative in the following quarters, indicating that the company's operating income was insufficient to cover its interest expenses.
By the end of 2023, the interest coverage ratio started to improve, reaching 60.83 in December 2023. This positive trend suggests that Boston Beer Company Inc's operating performance may have strengthened, enabling it to better cover its interest payments.
It is important for stakeholders to closely monitor Boston Beer Company Inc's interest coverage ratio, as a sustained low ratio or negative ratio could indicate financial distress and potential difficulties in meeting debt obligations.